Evgenii "Gufis" Kondratev NVIDIA's market capitalization dropped by more than $580 billion in a single day. As a result, the company lost its title as the most valuable in the world, which now belongs to Apple once again. The $589 billion decline in NVIDIA's market value marks the largest drop in market history.
Image: google.com
The sharp fall in NVIDIA stock price followed the rapid rise in popularity of a new artificial intelligence model developed by the Chinese company DeepSeek. Its creators claim that the chatbot can compete with OpenAI's generative AI, is significantly cheaper to develop, and can operate on less advanced chips than those produced by NVIDIA.
Market participants are alarmed by DeepSeek's more efficient approach to training and deploying models, as it "undermines the core business model" of the industry, where AI developers depend on expensive chips and massive computational power. This raises questions about whether billion-dollar investments in this space are justified and whether valuations of major beneficiaries like Nvidia are truly accurate.
During after-hours NVIDIA stock bounced back a little, but still the drop is very big.
Main image: reddit.com
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